news.sky.com
NatWest to Sell Cushon Pension Provider
NatWest Group, two years after acquiring Cushon for £144 million, is reportedly seeking a buyer for the workplace pensions provider, aligning with CEO Paul Thwaite's strategic refocusing on core banking priorities and simplification.
- What is the primary reason behind NatWest's decision to sell Cushon?
- NatWest's sale of Cushon reflects CEO Paul Thwaite's strategic priorities. This includes a bank-wide simplification program and a focus on core banking activities, shifting away from the diversification strategy that led to Cushon's acquisition. This aligns with a broader effort to enhance balance sheet and risk management.
- How might this sale impact NatWest's future strategy and the broader pensions market?
- The sale indicates a shift in NatWest's focus toward core banking operations, potentially signaling a retreat from non-interest income diversification strategies. In the broader market, the sale of Cushon could accelerate consolidation among pensions providers, in response to the government's drive for larger-scale defined contribution schemes managing at least £25 billion in assets by 2030.
- What are the key financial aspects of Cushon and the potential implications of its sale?
- Cushon, with £3bn in assets under management and £17.4m in revenue (97% of total revenue) in 2022, serves 650,000 members across 21,000 employers. Its sale could generate significant funds for NatWest and potentially benefit buyers seeking consolidation in the pensions market, fueled by recent government reforms aiming for larger-scale defined contribution schemes.
Cognitive Concepts
Bias by Omission
While the article provides a comprehensive overview of the situation, potential omissions could include the perspectives of Cushon's employees or customers. The impact of the sale on them is not directly addressed. Furthermore, the article does not delve into the specific financial details of the potential sale, such as the expected sale price, beyond mentioning the original acquisition cost. These omissions do not significantly distort the overall narrative, but could provide further context.
Sustainable Development Goals
The sale of Cushon may lead to increased efficiency and focus for NatWest, potentially boosting economic growth. The potential acquisition of Cushon by another company could also create new job opportunities or maintain existing ones within the pensions market. However, the impact on employees at Cushon is unclear.